Pacific Rubiales Dissidents See Hypocrisy in CEO’s Payout Plan

The investor group pushing to block Alfa SAB’s takeover of Colombia’s Pacific Rubiales Energy Corp. says the structure of a $15 million proposed payout to the oil producer’s chief executive exposes the hypocrisy of the deal.

While the board agreed to sell Pacific Rubiales at C$6.50 a share, CEO and Director Ronald Pantin is going to use his cash from the deal to buy equity units in the company at the same price. So, as management urges investors to sell at a level 71 percent below where the stock was a year ago, the CEO, chief financial officer and other top managers are buying in at that same level.